YB new stock pitches

Author

Connor Van Ooyen
October 07, 2024

Hello!

NOTE: I’m having some issues with my email platform. If you are a free subscriber, you should see a section in this email with a headline “HIGHLIGHTED PITCHES (FREE)” that includes 3 stock pitches. Premium subscribers should have a section with the headline “HIGHLIGHTED PITCHES (PREMIUM)” plus the “THE REST OF THE PITCHES” section. If you are missing any sections you should have, please let me know. You also can visit https://www.newsletter.theyellowbrickroad.email to read the email online if a section is missing.

I’ve just added 37 new pitches to the website.

As always, you can visit the website to see all of the stock pitches and search/filter them at https://www.joinyellowbrick.com (if you are a premium member, make sure to login so you get the most recent pitches).

Thanks for reading!

Connor (founder of Yellowbrick and CEO Watcher)

YB PORTFOLIO

The YB Tracking Portfolio copies the trades of the top 10 investors (based on the average returns of their previous stock pitches) in our database of 1,000+ investors.

Current returns (started mid-May)

IN CASE YOU MISSED IT

Top stock holdings of Fintwit investors

A bunch of investors on Twitter/X shared their current portfolio holdings, so I collected them all into a thread.

Check out the thread below and make sure to like/repost!

HIGHLIGHTED PITCHES (FREE)

Author Returns

The below stock pitch is from Idea Brunch.

We have 36 stock pitches from them in our database and their historic returns are…

Upgrade to Yellowbrick Road Premium to unlock the historic returns for all authors.

FUND LETTER - Idea Brunch

Idea Brunch with Derek Brown of Dardanelles Capital - Flutter Entertainment plc

Flutter Entertainment plc operates as a sports betting and gaming company in the United Kingdom, Ireland, Australia, the United States, Italy, and internationally.

Ticker: FLUT | Price: $236.54 | Price Target: N/A
Market Cap: $42.21B | Timeframe: N/A

🎰 Sports Betting | 📈 Bullish Idea

Flutter Entertainment (FLUT), parent company of FanDuel, is the #1 player in U.S. online sports betting with a $42.2 billion market cap. The company is poised for significant growth, projecting $2+ billion in EBITDA and $3 billion in free cash flow by 2027. FanDuel aims to double its active U.S. players to 6 million by 2027, leveraging its technological and operational advantages. The company's iGaming segment is growing rapidly, with 47% revenue growth and a 27% market share. Flutter's international business continues to grow at high single digits. As Flutter shifts towards a U.S.-centric model, including a recent NYSE listing, it may close the valuation gap with peers like DraftKings, Uber, and Booking.com. Key growth drivers include increased player penetration in existing states, potential legalization in large states like Florida, Texas, and California, and the maturing U.S. market shifting focus from revenue growth to profitability. Risks include the pace of new state legalization and competitive intensity in the industry.

Read the full article here. Read time: 1 min

Share this stock pitch:

https://www.joinyellowbrick.com/sp/12785/?ref=PLACEHOLDER

Author Returns

The below stock pitch is from @Toffcap.

We have 55 stock pitches from them in our database and their historic returns are…

Upgrade to Yellowbrick Road Premium to unlock the historic returns for all authors.

TWITTER - @Toffcap

Talkspace (TALK)

Talkspace, Inc. operates as a virtual behavioral healthcare company in the United States. The company offers psychotherapy and psychiatry services through its platform to individuals, enterprises, and health plans and employee assistance programs.

Ticker: TALK | Price: $236.54 | Price Target: N/A
Market Cap: $42.21B | Timeframe: N/A

📞 Therapy (Mental Health) | 🔄 Turnaround | 📈 Bullish Idea

Talkspace (TALK), an online mental health provider and former SPAC, is showing signs of earnings improvement. The company has potential to generate mid to high teens EBITDA next year, which could result in a 15-20x EV/EBITDA valuation with 50-100% year-over-year growth. TALK has a strong balance sheet, with approximately 30% of its market cap in net cash and a decreasing cash burn rate. The company recently approved a $25 million share buyback program, demonstrating confidence in its financial position. Given its solid cash position and improving financials, Talkspace appears well-positioned for a potential turnaround.

Read the full article here. Read time: 1 min

Share this stock pitch:

https://www.joinyellowbrick.com/sp/12798/?ref=PLACEHOLDER

Author Returns

The below stock pitch is from @acemoney21.

Their historic returns are…

Upgrade to Yellowbrick Road Premium to unlock the historic returns for all authors.

TWITTER - @acemoney21

Zscaler (ZS) Set Up for a Re-Rating

Zscaler, Inc. operates as a cloud security company worldwide.

Ticker: ZS | Price: $171.12 | Price Target: $213.50 (+25%)
Market Cap: $26.52B | Timeframe: N/A

🔐 Cloud Security | 📈 Bullish Idea

Zscaler (ZS) presents a potential 22% upside as an infrastructure SaaS play, with a $213.5 price target based on conservative FY26 revenue of $3.1B and an 11.5x EV/rev multiple. Analysts expect a 19.5% 2-year billings CAGR for FY25/26, down from an initial 22%. The stock screens well with positive revenue revisions, a 41% discount to its 5-year average EV/rev multiple, and an RSI of 46 with high beta. Key technical levels include the 100-day MA at $180.5, 50-day at $177, and 200-day at $195. Despite management's fumbled billings guidance for FY25, the company's best-in-class product continues to warrant a premium. Risks include billings growth and management messaging. The stock is currently trading at 9.4x forward EV/rev, with potential for a re-rating to 12.5x if the company can deliver a beat and slight raise. While not a long-term bullish stance, the trade offers an attractive risk/reward at the current price of $174.

Read the full article here. Read time: 3 min

Share this stock pitch:

https://www.joinyellowbrick.com/sp/12808/?ref=PLACEHOLDER

Find all of the stock pitches on https://joinyellowbrick.com (30-day delay for free subscribers).

Unlock all stock pitches (plus historic author returns and Elite Investor Feeds) by upgrading to Yellowbrick Premium.

THE REST OF THE PITCHES

To get access to all of the stock pitches, upgrade to Yellowbrick Road Premium. If part of your job is idea generation (either for your personal account or a fund), it’s a no-brainer.

🎁 REFERRAL PROGRAM 🎁

Use your unique URL below or the share URL for any of the stock pitches to unlock insanely valuable awards.

Premium members have access to these awards here.

THAT’S ALL FOLKS

Thank you so much for reading today’s email! Your support is the only way I can write this email for free every day.

Give me feedback in the poll below and share the newsletter with other investors if you find it useful!

Connor

*Follow Yellowbrick on Twitter at @joinyellowbrick

How would you rate today's newsletter?

If you vote 1 or 3 stars, please leave a comment with what you didn't like so I can improve it!

Login or Subscribe to participate in polls.

Reply

or to participate.